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Have heard nothing from Chase - need advice

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I need a little advice here. My husband and I each have a card that was first through Providian, then WAMU, and now Chase. We made the tough decision to try to settle our cc debt about the time we got our first cc bills through Chase, which means we have not made any pmts to Chase on those cards. We were getting multiple phone calls per day from Chase at first - I answered them when I felt up to it and my story was always the same: our income has decreased, have had some emergency expenses come up, etc., all of whcih are true. Next, we got letters from Bureau of Collection Recovery who said they were collection agency for the Chase debt. I sent debt validation ltrs to BCR also telling them not to call me but to communicate with me in writing - we have heard ZIP. Not a peep from BCR and nothing from Chase other than our monthly stms. Why would Chase stop sending me notices about "working something out" and/or calling me?
Now I am really not sure what to make of this. Currently, we are not able to pay them anything towards settlement (we have had many, many unexpected things come up and are settling with a couple other cards). I believe we are close to the charge-off stage for both cards.
Has anyone had an experience such as this? Will I just get hit with a lawsuit one day? Thanks for any advice anyone may have.

I am in basically the same situation. Although I get calls maybe once a week from a 3rd party collector on my cell (but I don't pick up).

I believe I am about 100 days late.

Advice is appreciated.

Sub: #1 posted on Thu, 08/20/2009 - 01:15


Hi Guest64,
I hope you don???t mind me asking a probing question.
Who are you working with, or what source is being consulted, that is encouraging you to send DV letters while an account has not been charged off?
The answer is not as important as much as the fact that you are getting bad direction.
Sending letters, of virtually any nature, to the OC when the account is in pre charge off only increases the likelihood of legal placement. This goes for almost all national credit issuers.
Chase is very busy right now. They are doing assignment to collection firm???s pre charge off. Your letter writing is in Chases file and can lead to increased risk for legal action in order to collect!
Now, having gotten that melodrama out of my system, your account is likely just in a determination stage for assignment, sale or legal placement. That decision may have already been made, but not enough time has gone by for the collection Borg to have assimilated your account.
My point (not a slam on guest64): Quit sending letters that only increase the risk of attorney placement.

Mileage may vary

Sub: #2 posted on Thu, 08/20/2009 - 02:38


To Someone Else - I sent a validation letter to Bureau of Collection Recovery (BCR) not to Chase. BCR's letter to me represented themselves as a collection agency, not as being in any way a part of Chase, so I am not sure where you are coming from. I did not send anything to Chase telling them not to contact me or asking them to validate my debt - all of that correspondence went to BCR.
If Chase is doing as you say and doing assignments to collection firms pre charge-off, then what was wrong with me asking a collection firm to validate the fact that they were legally allowed to collect my debt with Chase? Are you suggesting I should have ignored their letter completely?

Sub: #3 posted on Thu, 08/20/2009 - 03:40


Hi 64,
The letters you send in pre charge off, regardless of the named recipient, will become part of the file information that will later be used to determine placement of a charged off account. While debt validation requests are most certainly applicable to a 3rd party collection outfit, its use in the situation you described in your initial post is premature. Any contact from a 3rd party, pre charge off (generally 6 months delinquency) is just an extension of the original creditor.

Chase has been doing a lot of pre-legal placement this year. Other creditors do too. I only see it increasing. One of the triggers that I can squarely place as a reason for legal placement has been letters such as what you sent. This information is not sourced from my nether region, it???s first hand. It has been the case for some time. Even settlement offers made by consumers, that are sent unprovoked, can trigger adverse placement. No letters sent, of any nature, no increased risk exposure.

Companies and websites have been promoting this letter thing for years past its usefulness.

Assignment only, to a 3rd party, post charge off, is still something that can be seen by the OC and used for a different determination on placement if the account cycles back to them. They may even have a provision for yanking it from the 3rd part for this reason. If the original creditor maintains the legal right to collect on a debt post charge off (they did not sell it), they can see anything you sent to the CA at will. Post charge off is admittedly safer to send correspondence than pre charge off though.

Most major card issuers have, and/or are, developing procedures, on an ongoing basis, to maximize their return on non performing accounts. The environment is pretty fluid. Major banks are willing to settle. They also see (whether wrong or right) the process as being abused. They are reacting to that. Send a form letter, or what would be determined by a clerk to be a form letter, take your chances.

To answer your question after my bout of histrionics; If it were me, or me working with you, I would not have written to them. It would not have gone ignored though.

Mileage may vary

Sub: #4 posted on Thu, 08/20/2009 - 04:33


What is "pre-legal placement"? I was just informed by a CA that my Citi card shows "pre-legal" status. If they sue me, my only option is bankruptcy. Why would they want to push me into Chapter 7 and get nothing?

Sub: #5 posted on Wed, 09/16/2009 - 08:48

estelle_smiles estelle_smiles

(Posts: 11 | Credits: 3.04)

Why would they want to push me into Chapter 7 and get nothing?
There apparently is a strong cultural bias against filing bankruptcy (plus it's gotten tricky these days) so they are hedging their bets that you won't do it. IMO.

Sub: #6 posted on Wed, 09/16/2009 - 10:14

Chrys Henderson Chrys Henderson

(Posts: 2532 | Credits: 173.73)

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